Apple now makes close to 7% of its iPhones in India, a significant leap since its estimated production of 1% in 2021, according to a Bloomberg report on April 13, 2023.

The production growth in India comes as Apple tries to reduce its reliance on China against the backdrop of geopolitical tensions between China and the US.

Supply chain shortages at Apple supplier Foxconn’s main iPhone centre in Zhengzhou, China exposed vulnerabilities in Apple’s global supply chain.

Manufacturing problems in China coincided with the announcement by Indian Prime Minister Narendra Modi that India was focused on attracting foreign investors by creating more manufacturing capacity in the country.

A recent GlobalData report called China Watch: China trade: Worse to come in Q1 expects these growing tensions between the US and China to only worsen its trade with US businesses.

Tom Mercer, commercial director for leading Manchester and London-based consultancy Gain Line, said: “India has an abundance of low-cost labour available, meaning the manufacturing of items in the country is highly cost-effective, making it a very attractive destination for large corporations like Apple, who can maximise their profit margins if they take advantage of small labour overheads.”

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Apple is said to be opening two new stores in India, one in Mumbai and one in New Delhi.